Posts Tagged ‘Sex Trade


Fareed Zakaria’s Capitalist Manifesto

The June 22 issue of Newsweek displayed a cover similar to what one might find on a copy of Marx’s Das Kapital or Che Geuvara’s Guerrilla Warfare. In reality, it’s just the opposite, bearing the title of “The Capitalist Manifesto”.

The central article of this issue was acclaimed journalist Fareed Zakaria’s “In Defense of Capitalism”, in which the author makes an eloquent, though logically unsound, vindication of the system.

For example, one of Zakaria’s primary arguments is that in order to avert economic crises (such as the current recession), “there’s a need for greater self-regulation…”. This is faulty by both the standards of Communism and (ironically) classic “Capitalism”. From a Communist perspective, one could argue that regulation isn’t the issue, it’s the system itself. An economic system based on self-interest will, inevitably, create more losers than winners. Even with regulation (be it self or state regulation), the “survival-of-the-fittest” process will be simply slowed, not altered. From a classical or “pure” Capitalist standpoint, Zakaria’s statement is also flawed since regulation, in any way, shape, or form, inhibits the growth of the free market. And even if one were to ignore the arguments against Zakaria’s statement (from both ends of the political-economic spectrum), one would be forced to ask whether or not “greater self-regulation” is even feasible. Humans have a hard enough time keeping themselves on their diets or giving up smoking, how can one be expected to self-regulate something as gargantuan as the economy? Again, the laissez-faire will argue that Capitalism shouldn’t be regulated and the Communists will argue that Capitalism shouldn’t exist period.

Now if it were the only flaw in Zakaria’s argument, then it might be excusable as simple idealism- a problem every system has to some degree. Sadly, this isn’t the case and there are plenty more defects plaguing the article.

At one point, Zakaria asserts that “What we are experiencing is not a crisis of Capitalism… Finance screwed up, or to be more precise, financiers did… Finance has a history of messing up”. Now before we can pass judgment on this statement, we have to dissect it first. Capitalism is, as described in previous posts, a system in which the end goal is capital, i.e. money. Finance is the current state of that capital, and financiers are those who deal in the exchange and/or circulation of money. In more simple terms, Zakaria has claimed that “The system isn’t to blame for the current situation being bad, it’s the people, and the situation is going to be bad a lot”. While this might sound reasonable, let’s take the logic behind this and apply it to a different scenario. Using Zakaria’s reasoning, one could look at a disease and claim that it’s not the fault of the treatment or the medicine the treatment requires but the patients who are to blame for not recovering. Of course, this is ridiculous. Anyone with a basic grasp of algebra can tell you that when there’s a problem with the result there must be a problem with the equation. Even if an advocate of Capitalism were to argue that the system is made up of humans and humans are naturally fallible, he or she would still arrive that the same conclusion (“therefore, Capitalism is naturally fallible”)!

And there’s more.

Zakaria claims that “over the past quarter century, more than 400 million people across Asia have been lifted out of poverty”. Now there are several issues with that statement in and of itself, not counting it’s wider implications. Firstly, there may or may not be any connection between these people’s rise out of poverty and Capitalism. Firstly, by simply redefining the word “poverty” one could technically determine the percentage of the world that is “impoverished”. Secondly, if poverty is defined by a person being paid less than one dollar a day, that said person could be “out of poverty” by being paid one dollar and one cent, rather than ninety-nine cents. Just because he or she is no longer in poverty, doesn’t mean his or her life is in any way improved. Thirdly, one must keep in mind that four-hundred million people have been [allegedly] lifted out of poverty in Asia. Zakaria fails to mention that poverty levels in Africa and much of the rest of the world continue to rise. Even if one were to look at Asia alone, at what cost has it dragged itself out of poverty? South East Asia has one of the highest levels of prostitution and sex-slavery in the world, and sweat-shop labor is rampant in the rest of the continent. All in all, Capitalism may have lifted many people out of poverty, but the number is negligible compared to the number of people still destitute, starving, and homeless.

In short while Zakaria’s article is well-written, in all honesty, the arguments made in the defense of Capitalism are unsound. Zakaria makes as good of a defense of Capitalism as Don Quixote made a good assault on the windmills, though in Don Quixote’s defense, he thought the windmills were evil giants, whereas Zakaria has no illusions of the nature of the system he’s defending.


The Success of Capitalism

Shortly after the collapse of the Soviet Union, Fidel Castro commented “They talk about the failure of Socialism, but where is the success of Capitalism in Africa, Asia, or Latin America?”.

This is the topic that will be explored here.

At first, it would seem that Castro’s comment- made in 1991- is now outdated. After all, in Asia Capitalism seems to be doing extremely well. Japan has become a world superpower, China (a semi-Capitalist, semi-Socialist country) has one of the highest export levels on earth, and Thailand and much of South-East Asia has made massive profits off of tourism. All in all, it would appear that Capitalism has done wonders for Asia.

Or has it?

Japan, as the world’s second largest economy, has done very well for itself. In almost every respect, Japan has benefitted from Capitalism, depending on one’s definition of what is and is not beneficial- a question that will be addressed later. However, when compared with most other Asian countries, one might very well be led to conclude that Japan’s success is an isolated phenomenon.

Take China, for instance.

As previously mentioned, while China claims to be a Communist country, in reality China could be best described as a semi-socialist dictatorship with high levels of privatization. Quite simply, modern China, despite it’s cultural and political heritage, is Capitalist. And Capitalism has not been kind to China, as is clearly evidenced by the rampancy of sweatshops, child labor, and questionable marketing techniques (such as the notorious poisoned milk scandal in 2008, or lead-painted toy exports in 2007). While one might argue that this not due to Capitalism but to a lack of government regulations however one must keep in mind that Capitalism- pure Capitalism- is one without regulation, as repeatedly argued by Smith, Freidman, Rand, and so on.

And it’s not just China.

Sweatshops and child labor are present in most countries (though to varying degrees), but it doesn’t end at mere repeats of Dickensian nightmares. Though present in every country on earth, the sex trade is particularly bad in South East Asia, most notably Thailand. As described in the previous post, Capitalism is defined as the buying and selling of goods or services for profit- the emphasis on services being key here. Both voluntary and forced, prostitution is a widespread “industry”, for lack of a better term. While some might argue that prostitution is the “oldest trade in the world”, one must still question whether or not this makes it right. After all, it was once Roman practice to leave unwanted children out under bridges, but the fact that was practiced for hundreds of years doesn’t justify it. Or perhaps a person could argue that the sex trade isn’t a result of Capitalism, but if it isn’t, what is? Would these women be selling themselves for free? Would brothel owners auction off women and girls without the incentive of profit? Capitalism’s point is capital– profit. With the profit taken away, there’s not point in buying or selling goods or services- sex included.

And this is only Asia.

In Africa and South America, colonialism, or rather “neocolonialism” is still present, though in far more subtle ways. While sweatshops and sex-trade are present in both Africa and Latin America, Capitalists seem to be less interested in the profits they could make in the countries so much as the profits from what they take out of the countries. Ivory from Kenya, diamonds from Sierra Leone, minerals from Peru, wood from Brazil, and so on in an almost endless list. Corporations, mostly Western, suck Africa and South America dry of its resources in exchange for nominal pay. A person in the DRC could work in a mine for coltan ore in dangerous conditions for long hours and receive less than a dollar for his work- enough to keep him alive, but not enough to allow him to find better work. These conditions, if imposed on Western workers, would lead to riots, but in South America and Africa, corporations are capable of taking advantage of poor living conditions to create a almost limitless workforce of unskilled laborers and bleeding these countries of their natural wealth. An advocate of Capitalism could argue that a coltan miner being paid a dollar is better than the same person being paid less- that these countries are still better off with neocolonialism than without. To this I must ask whether a child is better off prostituting herself than starving. Just because a person, country, or continent is marginally better off doesn’t mean that its treatment is in any way justifiable.

While the world can talk of the “fall of Socialism”, I suggest that one cannot speak of the success of Capitalism either.